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Suppose that a machine with an expected life of 10 years costs $40,000. If the machine has an operating expense of $4,000 each year and

Suppose that a machine with an expected life of 10 years costs $40,000. If the machine has an operating expense of $4,000 each year and the opportunity cost of capital is 10%, the equivalent annual cost is closest to:

Select one: a. $4,000 b. $16,000 c. $10,500 d. $8,000

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